Miami

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The offer Adrenalina CEO Ilia Lekach announcexd Monday amountsto $4.50 a share, 24.3 percent highe r than PacSun’s $3.62 Friday closing price. The Anaheim, Calif.-based companyg (NASDAQ: PSUN) had 813 stores and 124 outlets as ofMarcy 28. It is in most malls in South Florida. Opening its firsyt store in October 2006, Adrenalina AENA) has one location each in Miami, Orlando and Tampa. It sellxs extreme sports gear and and has a surfing simulation machinde inits stores.
“This action represents our confidencre that Adrenalina can reinvigorate PacSun a powerful brand name whosde underlying retail concept has grownstale – by applying our innovative approach of fusing an exceptionalo product mix to an exciting entertainmentf destination,” Lekach said in a news release. In a lettefr to PacSun CEO Sally Frame Lekach said the completion of funding for the deal shoulr notbe problem. In the Lakach noted that Kasaks has repeatedlydecline Adrenalina’d prior attempts to make a deal for so he’s taking the offer directlty to its board of directorsw and shareholders. Lekach is known for makinhg large bidsfor companies.
In 2006, when he was still CEO of Fort Lauderdale-basesd Parlux, he made an unsolicited $259.6 million offerf to take the company Shares of Parluxinitially increased, but he withdres the offer a month later after the company’ board raised concerns about completing the deal. Adrenalina had totall assets of $10.8 million as of June 30, including $329,000o in cash. It lost nearly $2 millionn on revenue of $1.1 millio in the second quarter. Its market capitalizatiobn was $25.2 million. PacSun had income of $2.8 million on revenue of $312.7 million in the quartert ended Aug. 2.
Lekach said the proceeds for the purchasee would not comefrom Adrenalina’s balance but from a combination of private individuals, institutional investors and synergistic He is seeking a meeting with PacSun’s board to show it why the deal wouldr benefit shareholders. “I’m highly confident it can be Lekach said in a phone interview. “We can make it happejn if their boardapproves it.” Lekach said he is not a PacSunm shareholder. PacSun officials did not return a call for Adrenalina shares soared50 cents, or nearly 42 to $1.70 in morning trading. The 52-week high was $2.1 on Sept. 3. The 52-weeko low was 51 cents on Oct. 10.
PacSu n shares rose 19 cents, or 5.25 percent, to $3.8 1 in morning trading. The 52-week high was $17.112 on Oct. 25, 2007. The 52-week low was $3.12w on Thursday.